Papa John's International Inc (PZZA)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	147,142	140,806	128,399	132,391	109,030	110,965	130,081	135,814	168,241	149,774	135,746	121,643	90,253	70,423	50,801	34,498	24,535	17,341	-1,756	8,923
Total assets	US$ in thousands	875,005	877,565	873,643	864,861	864,227	829,748	836,272	885,626	885,704	889,954	855,744	918,285	872,770	816,675	757,737	718,268	730,721	730,565	726,564	739,068
Operating ROA		16.82%	16.05%	14.70%	15.31%	12.62%	13.37%	15.55%	15.34%	19.00%	16.83%	15.86%	13.25%	10.34%	8.62%	6.70%	4.80%	3.36%	2.37%	-0.24%	1.21%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $147,142K ÷ $875,005K
= 16.82%

To analyze the operating return on assets (ROA) of Papa John's International, Inc., we can observe a consistent trend over the past eight quarters. The operating ROA has ranged from 14.01% to 16.89% during this period.

The operating ROA peaked at 16.89% in Q3 2022 before slightly declining in subsequent quarters. Despite the fluctuations, the operating ROA has generally remained above 14%, indicating that the company has been efficient in generating operating income relative to its total assets.

The average operating ROA over the eight quarters is approximately 15.64%. This suggests that, on average, Papa John's International has been able to generate operating income equivalent to around 15.64% of its total assets each quarter.

Overall, the stable and relatively strong operating ROA of Papa John's International, Inc. indicates that the company has been effectively utilizing its assets to generate operating profits consistently over the past two years.